Cabinet approves Kiru Hydro Electric Project in Jammu and Kashmir

The Cabinet Committee on Economic Affairs, chaired by PM
Modi has approved the investment sanction for construction of Kiru Hydro
Electric Project (624 MW) by Chenab Valley Power Projects Private Limited (CVPPPL)
in Jammu and Kashmir.

The project will be implemented at an estimated cost of
Rs.4287.59 crore (at July, 2018 price level) which includes Interest During
Construction (IDC)and Foreign Component (FC) of Rs.426.16 crore and
infusion of equity of Rs 630.28 crore by NHPC in CVPPPL, for construction of Kiru
Hydro Electric Project (624 MW) including Rs.70 crore for pre-construction activities
already approved by the Cabinet, while according the approval for execution of
the Pakal Dul HE Project.

CVPPPL, is a joint venture company amongst NHPC, Jammu and
Kashmir State Power Development Corporation (JKSPDC) and PTC with equity
shareholding of 49%, 49% and 2% respectively.

The project is located on River Chenab in Kishtwar district
of Jammu & Kashmir. It envisages construction of a 135 m high concrete
gravity Dam above deepest foundation level, 4 Nos circular, Pressure Shaft of
5.5 m internal dia of length varying from 316 m to 322 m, an underground Power
House and 4 Nos Tail Race Tunnel, Horseshoe shape, 7 m dia and length varying
from 165 m to 190 m.

The project shall provide much needed power in northern grid
and shall accelerate process of development of remote areas of Jammu and
Kashmir. The Project is scheduled to be completed in a period of 4 1/2 years.

Kiru Hydro Electric Project is envisaged as a Run of River
(RoR) Scheme, designed complying with the requirements of Indus Water Treaty
1960, with installed capacity 624 MW (4 x 156 MW). The Project would generate
2272.02 MU in a 90% dependable year.

Background:

The foundation stone of the project was laid by the Prime
Minister, Narendra Modi on 3rd Feb 2019.

The Government of Jammu and Kashmir (GoJK) already granted
exemption on account of payment of levy of toll tax, State Goods and Service
Tax (SGST), waiver of free power in a decremental manner and water usage
charges for a period of 10 years from the date of commercial operation.

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